DEAR FELLOW SHAREHOLDERS, FROM THE CHAIRMAN, CEO & PRESIDENT
By and large, I don’t reflect on the past, including Simon Property Group’s (“SPG”, “Simon” or the “Company”) accomplishments; however, milestones, including anniversaries, are a time to reflect. They also can provide perspective and help guide future actions. In other words, learn from mistakes made and double down on what has been successful. Here at SPG, we have done that and learned where we are proficient and where we need to improve. With that in mind, December 2023 marked three decades since Simon became a publicly traded company. It is with a sense of accomplishment that I address you on this significant milestone in our Company’s history. This 30-year journey has been an adventure (some may call it a rollercoaster) of growth, resilience, perseverance, and innovation in becoming the world’s preeminent owner and operator of best-in-class retail real estate properties, with scale.
DAVID SIMON Chairman, Chief Executive Officer & President
Billion Consolidated Revenue $5.7 Billion FFO $4.7 Billion Beneficial Interest of Combined NOI $6.2 Billion Cash Dividends Paid $2.8
From those early days of being public to SPG’s 30th anniversary, our successes are testaments to the collective efforts, vision, and unwavering support of many. Our ability to navigate the ups and downs of the last 30 years and hone in on what our core competencies are, while learning from missteps, has led to the Company we have today. We are strong, prosperous and poised for future growth. We embraced our past, but our instincts were to grow in scale and quality, find new markets and product types, create a fortress balance sheet, and innovate (think outside the box). Always focused on both the micro (how to make the property better) and the macro (positioning the Company for decades to come). We met challenges with determination, capitalized on opportunities when we identified them and maintained our relentless pursuit of operating excellence. Some fun facts backing this up:
• From our base of 115 properties in 1993, we have acquired more than 300 properties, developed more than 50 and disposed of approximately 250, resulting in our current domestic portfolio of 215 high-quality properties. The average occupancy of our portfolio increased from 85.6% to 95.8%; retailer sales productivity increased from $240 per square foot to $743 per square foot; and average base minimum rent increased from $16.91 to $56.82. • We expanded globally and today have 35 international outlets, including world-renowned outlets in Asia. • Our portfolio is differentiated by product type, geography, and enclosed and open-air centers, primarily located in large and growing catchment areas. • We are the largest landlord to the world’s most important retailers as we are focused on a well-curated merchandise mix that generates high sales productivity.
SIMON PROPERTY GROUP, INC
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